Hyundai Motor Group's First Electric Vehicle Dedicated Factory Starts Operation
Following This Year's EV3, EV4 Joins Next Year with 150,000 Units
Becoming a Key Export Base Alongside Ulsan and Hwaseong
On the 27th, Kia held a completion ceremony for the EVO Plant within Autoland Gwangmyeong (Kia Gwangmyeong Plant) located in Sohadong, Gwangmyeong, Gyeonggi Province. This is Hyundai Motor Group's first dedicated electric vehicle (EV) factory, newly remodeled into an advanced plant after about a year of renovation of the previously operating Gwangmyeong Plant 2.
Along with the purpose-built vehicle (PBV) dedicated plant under construction at Kia Hwaseong Plant, targeted to start operations next year or the year after, and Hyundai Motor Ulsan Plant’s dedicated EV factory, it will serve as an important hub for Hyundai Motor Group’s domestic electrified vehicle production. The Gwangmyeong EV plant has already been producing the compact electric SUV EV3, and plans to produce the compact sedan-class EV4 starting next year. With the future outlook uncertain due to a slowdown in EV demand, there is growing interest in how the market will respond to these affordable electric vehicles.
The compact electric SUV EV3, produced at Kia Gwangmyeong EVO Plant. It is the first dedicated electric vehicle factory within Hyundai Motor Group. [Photo by Hyundai Motor Group]
The EVO Plant’s name is derived from “Evolution,” symbolizing progress. It also evokes “EV” for electric vehicles. The new Hwaseong plant uses the same name. Hyundai Motor Group Chairman Chung Euisun chose the Gwangmyeong new plant, which was under active construction, as the venue for this year’s New Year’s gathering, recognizing its symbolic significance for the group. At the event, Chairman Chung said, “Starting from here (Gwangmyeong new plant), I sincerely look forward to electrification innovations extending to Ulsan, the United States, and globally.”
The newly established Gwangmyeong EV plant was completely rebuilt on a 60,000㎡ site with a total investment of 401.6 billion KRW, replacing the old factory. This allowed production to start earlier than the Hwaseong and Ulsan new plants, which began construction earlier. The company explained that since the plant is located in an urban area and designated as a greenbelt (development-restricted zone), the construction was carried out with the idea of “maximizing change with minimal expansion.” Industry insiders note that the limited expansion and designation as an overconcentration control zone prevented the plant from receiving tax credit benefits, which is disadvantageous. EV plants are designated as national strategic technology and are normally eligible for up to 25% tax credits.
Hyundai Motor Group Chairman Chung Euisun is delivering a New Year's address at the Hyundai Motor Group 2024 New Year's meeting held on the morning of January 3rd at Kia Autoland Gwangmyeong in Gyeonggi Province. [Photo by Yonhap News]
The company set the keywords for the new plant as “eco-friendly” and “worker-friendly.” As the first site to fully embrace electrification transition, new features were applied to each process. The body assembly process introduced automated guided vehicles (AGVs) for logistics, creating a state-of-the-art factory. The painting process adopted a water-based method instead of oil-based, making it environmentally friendly. The assembly process was designed prioritizing worker conditions, including high-voltage battery handling and automatic wheel and tire installation. The company stated that various new technologies suited to EV characteristics were introduced.
The EV3 produced at this plant is Kia’s third dedicated electric vehicle following the EV6 and EV9. The EV3, first launched domestically, will be sold overseas starting with Europe in the second half of this year. The Gwangmyeong new plant will also produce the EV4 from the first half of next year. The EV4 is Kia’s only compact electric sedan. These two models are important because they were developed focusing on expanding adoption with price competitiveness. As EV demand has slowed and many companies have slowed their electrification transition, expectations for new EV models are naturally high.
Once EV3 and EV4 production stabilizes, the Gwangmyeong new plant’s production capacity is expected to increase to 150,000 units annually. As the number of models produced at Kia Gwangmyeong Plant increases, it has emerged as a key EV export base alongside Ulsan (Hyundai) and Hwaseong (Kia). Gwangmyeong Plant had no export EVs until the second half of last year, when it began actively selling EVs overseas and increasing export volumes. The plant also produces the large electric SUV EV9 using existing lines. Demand for this model is growing mainly in the North American market.
About 150 people attended the completion ceremony, including Park Seung-won, Mayor of Gwangmyeong; National Assembly members Im Ok-kyung and Kim Nam-hee; and Lee Ji-seok, Chairperson of Gwangmyeong City Council. Mayor Park said, “We will do our best to develop the eco-friendly automobile industry together with the company and contribute to revitalizing the local economy and creating jobs.” Kia CEO Choi Jun-young (Vice President in charge of domestic production) said, “The Kia Gwangmyeong EVO Plant is a place to firmly establish the first step as a leading electric vehicle brand envisioned since the brand relaunch,” emphasizing, “We will lead innovation in the EV market and fulfill our responsibility for a sustainable future.”
Unmanned Automated Guided Vehicle operating at Kia Gwangmyeong Evo Plant [Photo by Hyundai Motor Group]
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